At the time of change in profit-sharing ratio, sacrificing ratio is determined so that
A. assets and liabilities are shown at their present value
B. gaining partner is not put to advantage and sacrificing partner is not put to disadvantage and vice versa
C. gaining partner can compensate the sacrificing partner for the sacrifice of profit share
D. None of the above
Correct Answer
C. Gaining partner can compensate the sacrificing partner for the sacrifice of profit share.